Industrial transformation with linked AI NTT AI-CIX
NTT AI-CIX has launched. The company is a new company fully funded by NTT, and aims to transform industry by promoting “linked AI” instead of “individual AI”. Specifically, it will promote linked AI services across business and industries. It will realize the optimization of the entire supply chain using cross-business and cross-industry data, and aim to develop new industries and solve social issues such as labor shortages.
The new company is a spin-off of the department that was involved in data-related work at NTT Research Laboratories. For the time being, the business will be promoted by about 30 employees.
The company’s president, Ippei Shake, said, “We are a new company that contributes to the sophistication of AI. In terms of solutions and applications, we will focus on and strengthen linked AI in particular.”
CIX stands for cross-industry transformation, and has two major meanings.
The first is the chain of industries and the chain of industries. This shows the cooperation of the supply chain, including retailers, manufacturers, logistics, and agriculture.
The other point is from the perspective of R&D.
President Shake explains, “NTT Laboratories is developing AI models, but AI that utilizes data in particular creates new value by continuously acquiring data, which takes a relatively long time. Moreover, the data is not with the laboratory, but with the customer. Therefore, in terms of data utilization, it is difficult for the laboratory to develop an AI model on its own. The data is with the customer, and the technical capabilities for developing AI models are with the laboratory. To fill this gap, we will create value through data while connecting with customers through our business activities. This is our role.”
For example, retail, manufacturing, logistics, and wholesale are all different industries, but are connected by distribution. In such cross-industry areas, by utilizing data without being closed to individual companies, predictions and overall optimization using AI become possible, creating new value.
“In the distribution supply chain, there is a limit to the accuracy of demand forecasts at the individual company level. By optimizing the entire supply chain, for example if the manufacturing industry could share retailer demand forecasts, production plans could be further optimized. We would like to continue with this initiative,” said President Shake.
The company’s main businesses are ① “AI/DX promotion and new business production business” and ② “platform development business.” In ①, the company provides consulting and solution services. In ②, the company aggregates algorithms into a platform and provides platform services.
The company’s distinctive feature is that it provides a seamless service from consulting to AI model development and provision on the platform.
It is unclear whether customers will provide all of their data. As a general trend, businesses are reluctant to release the data they hold.
Regarding this point, President Shaka said, “In fact, there are few businesses that have a clear reason for not releasing their data, and there is a lot of uncertainty. What data would give them great benefits if they shared it with other businesses? Or what data should they retain as a core competency? In many cases, this is not clear. Our goal is to clarify this and sort it out properly. Once they are able to do that, I think everyone will start releasing their data.”
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